Sunpower bags 43.6m yuan contract from Chinese petrochemical firm

ENVIRONMENTAL solutions firm Sunpower Group has secured a 43.6 million yuan (S$8.7 million) contract to provide high-efficiency heat exchangers to its repeat customer, Zhejiang Petrochemical Co, the mainboard-listed firm announced on Thursday.

Following delivery of the project at the end of 2019, Sunpower expects a positive impact on its results for the financial years 2019 and 2020 ended December.

Sunpower's heat exchangers will be used for domestic atmospheric and vacuum pressure units with an annual capacity of 10 million tonnes, which are part of Zhejiang Petrochemical's refinery and chemical integration project.

Sunpower previously worked with Zhejiang Petrochemical in 2017, when it supplied heat exchangers and coolers for the first phase of the same project.

The manufacturing and services segment is providing "resilient and stable" contributions, with 70 per cent of clients in this segment being repeat customers, said Guo Hongxin, executive chairman of Sunpower, in a press statement.

"This attests to the Group's proven ability to supply superior high-quality equipment and solutions for large-scale installations and projects as well as the strength of our partnerships with our customers," he added.

Sunpower shares closed at 43.5 Singapore cents on Thursday.